MBA401

People, Culture and

Contemporary Leadership
Workshop 7:
Leaders shaping culture, and the
culture of leadership.
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 Workshop Learning
Objectives
1. Define and describe organisational culture and climate
explain the importance of culture in terms of the
strategic goals of an organisation.
2. Identify the specific leadership orientations, along with
internal and external elements which shape an
organisation’s culture.
3. Describe and explain the Competing [cultural] Values
Framework and apply this to analyse different
This Photo by Unknown Author is licensed under CC BY-SA leadership styles and orientations.
4. Describe the process of cultural change and explain the
crucial role the leader plays in effecting and sustaining
this cultural change.
5. Describe and explain what is meant by a “culture of
leadership” and how this plays-out in contemporary
organisations.
Introduction.
Organisational culture is . . .
• Complex, difficult, complicated and multi-layered - cross
disciplinary
• Social Psychology
• Sociology
• Anthropology
• Something which differentiates organisations and the
people who work in/for them
• Is linked to productivity, longevity, growth, job satisfaction This Photo by Unknown Author is licensed under CC BY-NC-ND

etc
• More important than structure, strategy, competitive
advantage, financial performance (according to some)
• Is the “crux” of organisational behaviour
• Something that most effective business leaders are
successful at creating, shaping or changing
(Following, Intezari & McKenna, 2018, p161)
Workshop Activity: Interpreting the
classical/seminal definition of culture.
Agreeing with sociologist Max Weber, the anthropologist Clifford Geertz
(1973) wrote:
“ . . . [hu]man is an animal suspended in webs of significance
he himself [they/themselves] has [have] spun. I take culture
to be those webs, and the analysis of it to be therefore not
an experimental science in search of law but an
interpretative one in search of meaning.”
1. What do you think Geertz “means” by this?
2. How do you think this statement might relate to a contemporary
organisation in terms of explaining the organisations culture?
Contemporary Organisational Culture
Definition
• Schein (2010, in Intezari & McKenna, 2018, p.161) suggests
organisational culture is:
“A pattern of shared assumptions learned by a group as it
solves it’s problems of external adaptation and internal
integration . . .”
• In other words, for Weber, Geertz and Schein, culture is a type of bond
or connection between people based on things they have in common
such as values, beliefs, assumptions – and this plays out socially.
• Culture is, therefore, very powerful.
• It also follows that leaders as architects of organisational culture are in This Photo by Unknown Author is licensed under CC BY

a very powerful position!

 Classical & contemporary organisational
culture themes
• For decades emphasis has been on having the “right” organisational
culture to “achieve” success
• Originally the strategy-culture imperative
• At the same time, seemingly there has been a melding of scholarly
academic research and “motivational business writers” and
“consultants”
This Photo by Unknown Author is licensed under CC BY-ND
• Generally, the organisational culture themes have focussed on teams,
commitment, collaboration, empowerment, accountability and change
(See for example, Kotter2012)
• More recently there has been a creative innovative and entrepreneurial
focus to align with organisational strategic goals / trends (See for
example, Johnson, 2018)
• Post pandemic disruption sees a shift to “resilience and adaptability”
(with traces of innovation etc) (See for example, Moss, 2022)
Organisational Climate
• Organisational climate is associated with culture and also related
to contemporary leadership themes of organisational resilience
and employee engagement
• Culture is the shared beliefs, norms and behaviours which endure
over a long period (entrenched)
• Foundational to the company
• “The way we do things around here”
• Climate is an immediate individual perception and experience of
the state of the present work environment
• Often the employee level
• Relates to rewards, motivation, flexibility, adaptability, job This Photo by Unknown Author is licensed under CC BY-NC
satisfaction
• The difference is important to understand when leading change
(Following, for example, Szczepanska-Woszczyna & Bogaczyk, 2023)
 Organisation culture and climate: There is a difference

CULTURE CLIMATE
The “why” – purpose and mission The “what” – habits and behaviours
Underpinned by organisational values, Influenced by organisational policies,
attitudes and beliefs procedures and practices
Historically stable and resistant to change Open to influence and change – see above
“Shaped” by higher level organisational
Shaped by front-line team leaders & members
leaders

Drawn from NRI, 2023, Accessed October 2024, at https://neuroleadership.com/your-brain-at-work/latest-from-the-lab-organizational-culture-or-climate

 Workshop Activity: Climate, culture or both?
The Secret to Finding Your Ideal Workplace (Campan, 2023)

https://youtu.be/s9rCzZEZKnM?si=FkIP_jwm0Ffk7Xfc
 Aspects of organisational culture
• Multilevel
• Culture can be analysed/understood at different levels of the
organisation
• Dynamic
• Culture, while difficult to change, does evolve over time
• The central core values can change and in turn those who align with the
values

This Photo by Unknown Author is licensed under CC BY

• Structural stability
• The culture carries-on when people leave or enter the organisation
• Cultural depth and breadth
• Organisational culture is inextricability entwined with individuals’
views, values and ethics etc
• Culture permeates all functions and functioning (Schein, 2010)

(Following Intezari & McKenna, 2018, pp.163-164)

Aspects of organisational culture (cont)
• Patterning and integration
• The organisational culture integrates individual values, beliefs and
ethics to become a coherent whole (Schein, 2010)
• Members try to establish their own sense and order (Schein, 2010)
• Culture can be “measured”
• In the sense of the extent to which overall culture influence other
elements of the organisation
• Does the culture hinder or support performance, creativity, innovation,
operational quality etc? (Denison & Mishra, 1995)
• Leadership’s central role
• Leaders are critical and crucial to architecting and shaping an
organisation’s culture
• Leaders set the values which underpin the strategy and direction
(Schien, 2010)
• Enablement
• Positive organisational culture is associated with good performance,
efficiency & effectiveness
(Following Intezari & McKenna, 2018, pp.163-164)
 Schein (1985, 1990, 2010) suggests culture
spans three levels [of analysis]*
1. The visible artefacts (symbols)
• Things you can see and touch and read
• The buildings, the workstations, technology
• What people wear
• The signs, the ornaments, the lay-out
2. The espoused narrative (values)
• What people say they do, and processes they follow – but not necessarily what
they do
• Public statements about mission, values and goals
This Photo by Unknown Author is licensed under CC BY-SA-NC
• Celebratory events and road-shows
3. Deep unconscious level (assumptions)
• Not readily seen, heard, or espoused
• Employees underlying assumptions, perceptions, thoughts
• Why employees think and act the way they do

*NOTE: Schein’s model is informed by the seminal anthropological woks of Clifford Geertz (1972) Deep Play. Notes on the Balinese Cockfight. Geertz provides an “interpretation”
of the Balinese culture based on his observation of symbols, rituals and behaviours.
Contemporary orgainsational culture still considered as an
“iceberg model” - what you can and cannot “see.”

This Photo by Unknown Author is licensed under CC BY

Group Workshop Activity:
Artefactual analysis of culture in your new office!
• Congratulations! You have just been appointed as the “Director of
Accounting and Business Consultancy” in a large multinational. This is
your new office and a few of your staff! (see left). The others are
working from home today.
• Overall, you have a team of 20 highly qualified people who not only
provide specialised professional services to major corporate clients
they are also responsible for building relationships and business
development.
• This is your first day at the office, and you are trying to get a handle on
the workplace culture to make sure it is a good-fit with the company’s
values of “professionalism, reliability, accuracy, and respectful team.”
1. Considering Schein’s three layers of culture and considering the
artefacts in this photo to the left, describe the culture of your new
team in 300 words.
2. Do you think this is a good fit with the company’s values? Why?
Why not?
3. Would you make any changes to the office culture? How?
4. What are the limitations to your cultural analysis?
Organisational Culture Assessment
Instruments (OCAI) [survey/audit]
• Leaders mostly “assess” culture by administering a cultural
survey (actually, a “climate” survey – see earlier slide)
• Originally from Rensis Likert (1975) “cultural map” (“Likert
scale”)
• Four dimensions: Leadership, Communication, Motivation &
Control
• Many contemporary consultancies administer OCAIs and
“observe” the workplace
• Often a pre-cursor to organisational change or strategic re-
alignment, and sometimes performance gap analysis
• Result is a profile of present culture compared to the
desired culture
• E.g. an innovative organisation needs an innovative culture This Photo by Unknown Author is licensed under CC BY-SA-NC
Quinn’s Competing Values Framework (CVF) profile is crucial to
understanding and leading cultural change
• “Quinn’s CVF is actually Cameron and Quinn
(1999, 2005, 2006)
• Identifies central beliefs shared by a specific
cultural type
• Profile of organisation culture is represented by
four cultural dimensions drawn as a 2 x 2 matrix
• The X axis is a continuum from internal focus to
external focus (Similar to open - closed systems
[thinking])
• The Y axis is a continuum of the degree of
control or flexibility afforded to individuals
(Similar to autocratic – democratic leadership
This Photo by Unknown Author is licensed under CC BY style)
CVF is eight [8] quadrants
with a corresponding
leadership orientation
• CVF profiles internal cultural
orientations, e.g.,
• Innovative, entrepreneurial, risk-
taking business development
versus maintaining status quo
and regulatory compliance and
financing the loans
• CVF profiles desirable leadership
orientations against external
considerations
• Mergers, acquisitions and
aggressive take-over for
expansion - open systems
adaptability and readiness.
• Contraction to core business and
financial controls in times of crisis
to save business – internal
process and stability/control.
This Photo by Unknown Author is licensed under CC BY-SA-NC
CVF Cultural dimensions emphasises the complexity of leadership
Flexibility and Discretion
Culture Type: CLAN Culture Type: ADHOCRACY
Orientation: COLLABORATIVE Orientation: CREATIVE
Leader Type: Facilitator Leader Type: Innovator
Mentor Entrepreneur
Team Builder Visionary

External Focus and Differentiation

Value Drivers: Commitment Value Drivers: Innovative outputs

Internal Focus and Integration

Communication Transformation
Development Agility
Theory of Human development Theory of Innovativeness, vision,
Effectiveness: and participation Effectiveness: and new resources
produce effectiveness produce effectiveness

Culture Type: HIERARCHY Culture Type: MARKET

Orientation: CONTROLLING Orientation: COMPETING
Leader Type: Coordinator Leader Type: Hard Driver
Monitor Competitor
Organiser Producer
Value Drivers: Efficiency Value Drivers: Market share
Timeliness Goal achievement
Consistency and Profitability
uniformity Theory of Aggressively competing
Theory of Control and efficiency Effectiveness: and customer focus
Effectiveness: with capable processes produce effectiveness
produce effectiveness

Stability and Control

Source: Adapted from Cameron & Quinn (2006)
 Culture – Strategy alignment now and
into the future
• As an extension to CVF there are several other “desirable” organisational
cultural “dimensions” presently emerging.
• These are driven by external influences / disruptors and include
• Boardroom and Director ethics and accountability
• Social and Environmental Sustainability
• Human rights
• Organisational Resilience
• Adaptability and agility
• Embracing data, digital, AI and quantum
This Photo by Unknown Author is licensed under CC BY-NC-ND
• New ways of interacting socially and at work
• Safety
• Diversity and inclusion
• “Cyber security savvy”
(Following, for example, Alexander, 2024)
• The culture of an organisation, therefore, needs to be assessed, shaped
and architected accordingly
Group Workshop Activity:
Digital transformation (DT) culture and leadership.
Regarded as a disrupter, the “use” of digital technologies is ubiquitous
across the globe. From retail to manufacturing, energy and health care.
Most organisations are implementing, or have already implemented, a
digital transformation strategy.
Interestingly, DT is used both as the strategy, and as a means to achieving
that strategy - operationally (Nkomo & Kalisz, 2023)
1. As a consultant to an Australian firm considering a DT strategy, what
would be your recommendation in terms of the most important
cultural dimensions to consider which will support such a DT
strategy.
2. As the consultant, provide advice to your client about some internal This Photo by Unknown Author is licensed under CC BY-NC-ND

dimensions and tensions of culture they may also need to consider

with respect to possible barriers to implementing the DT strategy,
and explain why.
3. Another part of your brief as the consultant is to “head hunt” a
suitable leader who will spearhead the digital transformation for
your client. Write a brief 200-word profile for the type of leader you
believe will be most suitable.
Okay – so the culture is not what you expected.
Do you believe that culture can be changed?
Vote now by raising your hand!
1. YES
A culture can be changed.
How?
2. NO
A culture cannot be changed

Why not?
3. MAYBE
A little bit of the culture can be
changed.

Please explain?
 To answer, first consider how an
organisational culture develops
• Existing organisation culture is a combination of
emergent, residual and dominant culture/s (See, for
example, Bryson, 2008)
• Culture emerges from
• The remnants of a past strong culture
• A natural result of people just being “social”
• Deliberate efforts to create [new] beliefs and
core values
• As an example, think about how cultural diversity evolved
/ emerged in contemporary organisations
This Photo by Unknown Author is licensed under CC BY-NC-ND
Internal and external cultural
factors
• In other words, at a point in time, culture is a result of varying
“portions” of:
1. Internal Factors
• Members values
• Leader as a powerful cultural agent
• The vision, mission, values of the company
• The structure
• Communication
This Photo by Unknown Author is licensed under CC BY
2. External Factors
• Political
• Social
• Organisational stakeholders
• Technology (consider social media for example)

(Following, Intezari & McKenna, 2018, pp. 168-170

There are, therefore, three considerations
about leading cultural change
1. Pushing a new culture on-to people is not possible (E.g., Hatch, 1993)
• By its very definition culture is enduring and entrenched
• Consider notions of “strong” culture versus “weak culture”
• An undesirable culture can be very difficult to change
• It is the people, therefore, whom need to be changed
2. Cultural change is possible (E.g., Denison, 2014)
• Start at the top
• By setting [new] core values This Photo by Unknown Author is licensed under CC BY-SA

• Addressing the “artefactual” elements

• Through [new] stories and rituals
• By empowerment and involvement
3. Cultural change is only ever partially accomplished (E.g., Meek, 1988)
• Individual core beliefs and assumption remain
• Some dominant sub-cultures may remain
Pandemic and post pandemic cultural change. New ways of
working & virtual teams: Leadership from a distance
• Three things at play
1. Existing organisational culture re-shaped by external elements
2. Existing organisational culture strained by internal changes
3. Leader – Follower relationship virtual / at a distance
• Kaur Bagga et al., (2023) suggest an important interrelationship
between transformational leadership – organisational culture –
change management exists.
This Photo by Unknown Author is licensed under CC BY-SA

• Also, in response to the post-pandemic “undoing” of cultural

change, Lovich, (2021) suggests:
“ . . . changing culture is hard. Culture is squishy, touchy
feely, hard to pin down. . . . There is a straightforward,
linear, un-squishy approach to culture change.”
• Lovich (2021) goes on to suggest therefore,
1. Articulate the desired culture
2. Activate the change/s from the top
3. Embed the change in the operating model
The organisational culture and
organisational change paradox
• According to Phillips & Klein (2023) most models and Analyse
frameworks for organisational change focus on leaders existing
changing the culture culture

• They also report that 75% of leaders attempt to change culture

for strategic cultural fit
Sustain the Define the
• However, by definition, the existing culture can affect the cultural
Cultural
desired
acceptance / success of cultural change efforts. Change
change culture

• The focus of leading cultural change is on creating a “climate”

of:
• Alignment with vision and mission Make the
cultural
• Alignment with beliefs values and strengths changes
• Diversity and inclusion and multiple voices
How to Change Your Workplace Culture: Workplace
Culture Tips (Kerr, 2023)

https://youtu.be/mExVp20QNwk?si=A8JeQsDx3PBjpwRB
 Effective leadership is about creating the
right “conditions” for a desirable culture
to grow
• The analogy of a petri-dish is useful to explain the leader’s role in
cultural change (Following concept by Lucas, 2019 not yet in print)
• Similar to the organic metaphor and/or ecosystem
• A culture grows under the right conditions – temperature, light, host
medium
• A leader plays the role of creating the right conditions in an
This Photo by Unknown Author is licensed under CC BY-NC-ND
organisational setting
• This is similar to “enablement leadership” to:
• Enable healthy and positive work cultures
• Remove structural barriers
• Enable people to do their best work

(Also following Polaine, 2024)

 Leading cultural change is both a
style and a process
• Transformational, inspirational, authentic, diversity
awareness and inclusion, openness, resilience, adaptive,
innovative, agile, emotionally intelligent . . .
• At the same time a process which includes
• Diagnosing existing culture
• Determining desired culture
• Implementing cultural changes
• Consolidating and institutionalising the change
This Photo by Unknown Author is licensed under CC BY-SA • Cultural change can take many years, and it is usually an
ongoing dynamic process
Workshop Activity - Class Discussion:
“Leadership” is the new-age organisational
culture?
• Today’s workshop stressed the crucial role leaders play in creating and
embedding a culture in an organisation.
• Generally, leaders shape and change culture by attending to the “iceberg”
namely,
• Setting mission and values
• Modelling the desired beliefs and values
• Selecting members with the desired beliefs and values This Photo by Unknown Author is licensed under CC BY-SA-NC

• Now let us suppose the desired climate and culture is “leadership.”

1. Why do you think a leadership culture is desirable? Is this possible?
2. How might a leadership culture impact the leader-follower relationship?
3. What does this mean in terms of leader roles, responsibilities and
accountabilities? Who is in charge?
4. What do you suppose a leader culture would look like in an organisation?
Creating an organisational
climate & culture of leadership
• To this point, the underlying premise is that in a leader-follower
relationship the Leader assumes a dominant position.
• Also, as per CVF, the leader is pivotal in “managing” competing
expectations of followers
• Implicit hierarchical assumption is followers are “lower-down” This Photo by Unknown Author is licensed under CC BY-ND
and leaders are the heroes (Maccoby, 2004)
• Contemporary leaders are supposed to have incredible
“powers” and exhibit certain qualities and behaviours
• Leaders are, “ . . . stewards who are the primary care-takers of
climate and culture” (Day et al., 2014, p.2)
• Majority of leadership research focusses upon leader
development and marginalises the follower (Oc et al., 2023)
 Creating an organisational leadership climate
and culture: Imagine if everyone walked the
walk and talked the talk!
• The notion of leadership climate / culture first surfaced in the early
2000s (see for example, Day et al., 2014).
• Daniels, (2023) suggests that a “leadership culture” is imperative in the
present “business landscape.”
• Leadership culture “emerges” from all levels based upon individual
abilities and contributions
This Photo by Unknown Author is licensed under CC BY-SA-NC
• As with other cultural shaping, a leadership culture relies upon creating
the right environment whereby,
• Individuals can take ownership
• Enables collaboration between individuals and teams
• Individuals and teams make sound decisions autonomously
• Individuals inspire each other through their own actions
(Following Daniels, 2023)
Creating an organisational climate and
culture of leadership: A responsive, resilient,
agile, critical mass!
• Cultural beliefs about leadership are socialised by interpersonal and
collective means
• Leaders also provide individuals with growth opportunities,
mentorship, continuous learning, and opportunities to lead projects
and initiatives
• “Supersized” team-work and empowerment, a leadership culture
naturally aligns with contemporary strategic goals of, This Photo by Unknown Author is licensed under CC BY-SA-NC

• Innovation
• Creativity
• Social entrepreneurship
• Resilience
 Workshop close-out activity. Changing a culture: You are
the leader what would you do?
Congratulations! You have just been promoted to the director role of the Corporate Training Department of an Australian
company called CorpTrain. You have a team of 36 corporate trainers who are located in offices around Australia - 6 in
each state. CorpTrain’s mission statement is “To provide professional ethical and expert training, professional advice, and
professional services by a professional team of collaborative experts.” Each corporate trainer has a port-folio of clients –
mostly medium to large companies whom they provide professional corporate training such as Leadership, Management,
Marketing and some Director training.
During the pandemic, all training went to an on-line mode of delivery. This was successful since it was preferred by clients
because of greater flexibility and less interference with work. Now with the pandemic well into the past, all staff have
been ordered back to the office where they must work 7.5 hours per day, five days per week.
Before the pandemic, the team seemed to be a little disconnected and disengaged. The previous Director put this down
to being spread so far apart across the various states and working at different times of the day and sometimes burn-out.
This disengagement seemed to get worse during the work from home period during the pandemic.
Since the pandemic, and despite the return to their offices, the disengagement seems to have worsened. Staff are
budling “book walls” on their workstations so they do not have to see or speak to each other. Some people are
whispering and disappearing for coffee together without inviting other team members. No-one has attended the Friday
night drinks sessions that the previous Director instigated in an effort to encourage a more positive culture.
Your boss has asked you to assess the culture of your team and then to come up with at least three actions which will
begin to create a “better” culture.
Workshop Summary
• Culture is a very complex concept. It is both multi-dimensional and
multi-layered. Generally, it has a semiotic definition in terms of
peoples shared beliefs and assumptions (i.e. it rests in meaning)
• Edgar Schein is the most often cited researcher in organisational
culture. He suggests culture operates at three levels in the iceberg
model.
• The CVF is a way to understand conflicting sub-cultures within an
organisation and it also provides an insight into the complexity of
leading and balancing sub-cultural tensions in an organisation. This Photo by Unknown Author is licensed under CC BY-NC-ND

• Most organisations undergo a cultural change to align with

strategic goals. Cultural change is regarded as the key to
organisational change. Leaders manage cultural change as a
process beginning with identifying the existing culture and then
defining the desirable culture. Sometimes cultural change is best
achieved by hiring new people who are already aligned with th
new values.
• An emerging concept is the notion of “leadership culture.” This is
where leadership emerges at all levels of the organisation and is
achieved in a similar way to empowerment.
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